Labor wants to see action on insurance
THE Federal Government must “get off their backside” and fix the insurance issues facing North Queensland before the next major natural disaster, Labor has said.
It comes after Townsville residents shared their insurance horror stories, including skyrocketing premiums and surprise fine print clauses, during a forum yesterday.
Magnetic Island resident Luella Mackay said she called her insurer after the February floods to make a claim for damage and was told she had to fork out an extra $1000 before work could be done because she lived “offshore”.
Cairns-based Labor Senator Nita Green said it was time for the Federal Government to act on the 28 recommendations put forward by the Australian Competition and Consumer Commission Northern Australia insurance inquiry.
“The fundamental problem … is that what insurance companies are doing is essentially pricing people out of the market,” she said.
“What (federal MPS) could do now to help people in Townsville is take some action on this insurance crisis.”
The ACCC released its second updated report of its insurance inquiry in July, urging governments and industry to “act quickly” on all recommendations.
This included giving consumers more control over how building claims are settled, doubling the time on renewal notices from 14 days to 28 days, and creating a government-run national home insurance website.
The Federal Government has not yet indicated how or if it will implement the ACCC’S recommendations. Assistant Opposition treasury spokesman Matt Thistlethwaite said the Insurance Council had indicated some of the recommendations were achievable.
“It just takes the Government getting off their backside and bringing some of these reforms to the parliament,” he said.
North Queensland insurance advocate Margaret Shaw said the entry of newcomer Sure Insurance into the region’s market meant positive change might be on the horizon. But she isn’t holding her breath on politician-led action.
“I think some of the (ACCC’S) recommendations should be implemented immediately and they’re not all federal, some of them are (on a) state (level),” Ms Shaw said. “It’s interesting that everyone is saying we need it all and we need it now.
“I’ve been through six prime ministers, including Labor ones, and nothing has happened.”
Herbert MP Phillip Thompson said he had been discussing the ACCC’S findings with parliamentary colleagues, and in the interim he had been meeting with insurance executives to relay residents’ concerns.
“I’m going through the recommendations with my colleagues … but in the meantime that doesn’t mean insurance companies get off scot-free,” he said.